Owning a vending machine business can be exciting and profitable; however, to effectively assess the health of your business, measuring the metrics leads to operational improvements, growth, and a more robust bottom line.
The essential metrics that follow will offer sales indicators, machine usage rates, and customer satisfaction levels, each of which can be included in your vending machine business plan template.
1. Average Transaction Value
This key metric indicates the consumer’s choice of items and the value those choices represent. The results of tracking may suggest improvements, such as placing higher-value items toward the eyesight line in the machine, where consumers can view and purchase those items.
2. Sales Per Square Foot
The profit ratio of the vending machine is calculated against the cost of the machine location with this metric. Offering a true sales per square foot assessment, needed changes may include moving the machine or raising prices to drive a higher profit ratio.
3. Cash Flow Forecast
Offering a look ahead, this metric estimates monthly sales income against fixed and variable monthly expenses. This metric is a key performance indicator that often leads to improvements in operations, product selections, and expenses.
4. Quick Ratio
This metric measure measures your company’s ability to pay off debts with the liquid assets on hand. Calculating this metric offers a serious view of your ability to pay off business debt in an uncertain economy.
5. Relative Market Share
This external metric compares your business against competitors in the same space, determining who has the greater share. As a performance indicator, you’ll want to examine and make improvements where needed to increase your share.
Using these metrics as a snapshot of your vending machine business offers an informed opportunity to make improvements, forecast profitability and build a company positioned for long-term growth.